Unsurprisingly, since buying Twitter in October this year, Elon Musk has been implementing a series of controversial changes to the platform. In addition to them, however, some information leaked from within the company has drawn attention and raised suspicions that the social network is hanging by a thread.
The risk of Twitter bankruptcy is not a new topic, having already been admitted by Musk himself in a meeting with your employees. Despite not having commented again on the subject, a series of signs from his management seem to corroborate this possibility, implying that this threat, in fact, is very close to materializing.
In article published yesterday (12), the The New York Times revealed that Twitter has not paid rent for its San Francisco headquarters and any of its global offices for weeks. The information was obtained through three sources close to the company, whose names were not revealed by the report.
It is worth remembering that Twitter has not been profitable since 2019 and that Musk has lost a lot of money since he closed the acquisition. To give you an idea, since October, in addition to the social network having shown a massive drop in its revenue due to the departure of advertisers, the billionaire’s own net worth has decreased by R$ 46 billion.
Another “cost cut” raised by the The New York Times concerns the rights of former employees of the company. According to the site, two people familiar with the negotiations said that the company has been discussing the possibility of denying the payment of compensation to workers recently disconnected from Twitter.
For those who don’t remember, Musk has carried out mass layoffs since he took over as CEO of the platform. A situation that got even worse when the executive ultimatum to workers remnants, warning them to commit to the company’s “extremely hardcore” culture or leave their posts.
As a result, of the 7,500 people who worked on the bird’s net, just under 1,000 remained on the platform. The same ones who, in an internal email sent by Musk last Friday (9), were threatened by the executive with being sued if they speak to the media or “act contrary to the interests of the company”.
Twitter holds auction and gets involved in lawsuits
As if all that wasn’t enough, there’s even more evidence that Twitter’s financial blunder has put it in the crosshairs of bankruptcy.
A few days ago, it became public that the application will auction various items from its headquarters in San Francisco. The event will be held on the website of Heritage Global Partners and will have a total of 256 items auctioned. Among them are office chairs, coffee makers, tables, computers and even a statue of the famous bird on the social network.
In addition, it is worth remembering that the application faces some pending issues in court, such as the lawsuit filed by former employees of the company due to the lack of prior notice of their layoffs.
Under California law, mass layoffs must be given 60 days in advance — something that didn’t happen in the Twitter episode.
With information: boing boing